Annual Report 2013

Annual Report 2013

Resources for the Future Annual Report 2013

2013
Annual Report
Resources for the Future (RFF) is an independent, nonpartisan organization that conducts economic research and analysis to help leaders make better decisions and craft smarter policies about natural resources and the environment. RFF researchers collaborate on issues that shape the world we live in—from policies that impact local communities to negotiations that create global agreements—with the goal of developing practical solutions that make a lasting difference.
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Contents
A Letter from the President RFF by the Numbers: 2013 Leading Research Excellence Convening Our Community Shaping Policy Dialogues Toward the Next Decade Board of Directors 2 3 4 8 12 14 16
Supporters 18 Financial Statements Experts and Staff How You Can Help 20 22 24
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A Letter from the President
For more than 60 years, researchers at Resources for the Future have leveraged the tools of economic analysis to shape smarter policies for natural resources, energy, and the environment. RFF’s approach is uniquely objective, rigorous, and independent—a rarity in our increasingly partisan world. We strive to bridge this divide through the power of ideas and original research—and to connect and counsel leaders from across sectors to build a stronger, more sustainable future. This combined role of researcher, advisor, and convener is underpinned by the investments of those who understand the need for authentically objective analysis to inform better policy. With this in mind, I offer our most sincere thanks to the people, agencies, foundations, and companies who support work at RFF each year. In the pages of this year’s Annual Report, you’ll find a consequential and highly relevant portfolio of activity that demonstrates a wise use of this support, in tandem with an unfaltering commitment to developing policy solutions and innovations that better prepare us for the future. RFF supporters make it possible for our experts to pursue new lines of research, engage with policymakers, and identify and analyze emerging trends. Long before the mainstream climate discourse acknowledged the Clean Air Act as the “law of the land,” for example, RFF researchers such as Dallas Burtraw were assessing the potential to regulate carbon emissions under this law. As a result of this pioneering work, the US Environmental Protection Agency and state governments are now calling on RFF for guidance on the anticipated regulation of greenhouse gas emissions from existing power plants.
“RFF’s approach is uniquely objective, rigorous, and independent—a rarity in our increasingly partisan world.”
Support from donors also allows RFF researchers to explore “over the horizon” issues. For example, RFF’s Jim Boyd and Allen Blackman are identifying methods for prioritizing investments in conservation—working with colleagues to create approaches that emphasize specific, tangible biophysical and societal outcomes. The result is a new framework for assessing “conservation return on investment” as a means of reaching environmental goals. RFF, above all else, is a place of ideas. Throughout 2014, I hope you’ll take a deeper dive into research at RFF by attending our workshops and seminars to share your questions, ideas, and expertise. Our scholars are keenly interested in deconstructing and harnessing the trends and issues shaping our world, and your participation will help ensure that our work is truly relevant to today’s policy community. Let’s keep the conversation going.
Phil Sharp President
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research projects were undertaken by RFF researchers and staff
130
people received the RFF Connection, RFF’s monthly newsletter
12,000
2,000
people watched RFF’s seminars via live webcast
people visited Common Resources, RFF’s blog on current research and policy debates
11,000
RFF by the Numbers: 2013
64
subscribers received Resources, RFF’s agship magazine
15,000
3,000
Facebook and Twitter users followed RFF
publications were produced by RFF researchers—all of which are available at www.rff.org/publications
people attended RFF’s First Wednesday Seminars
600
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Leading Research Excellence
In the 1950s, RFF pioneered the field of environmental and natural resource economics, leading pathbreaking investigations to better understand the concerns of resource scarcity that faced the nation. Today, RFF researchers are proud to uphold that legacy. They remain dedicated to bringing the best possible analysis to bear on the world’s critical natural resource and environmental challenges—those that will determine the kind of world future generations will inherit. The following pages feature a sample of the increasingly critical research and analysis conducted by RFF experts in 2013.
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Transportation
Natural Gas
Analyzing Fuel Economy Standards
With new fuel economy standards in effect to reduce both the amounts of gasoline used and greenhouse gases emitted, RFF scholars are beginning to examine the impact and success of the policy. This year, RFF Senior Fellow Virginia McConnell released “The New CAFE Standards: Are They Enough on Their Own?” She finds that the corporate average fuel economy (CAFE) standards do not guarantee that the new dual goals will be met and suggests implementing a complementary policy, such as a carbon or fuel tax or a better information program to convey the fuel savings. RFF Fellow Joshua Linn also released research that examines another issue with tighter fuel economy standards: the rebound effect. In “The Rebound Effect for Passenger Vehicles,” he explains that when cars get better fuel economy, people will drive more, resulting in more gasoline use, greenhouse gas emissions, traffic congestion, road damage, and other social costs.
Managing the Risks and Expanding the Benefits of Shale Gas
In 2013, the United States led the world in producing natural gas from the hydraulic fracturing of shale formations (shale gas). The boom has also raised awareness of the environmental impacts of this technique. A team of researchers, working within RFF’s Center for Energy Economics and Policy, completed an 18-month initiative to identify the associated environmental risks and assess the existing regulatory frameworks at the state level. Numerous papers were released and are available at www.rff.org/shalegasrisks. At the same time, China holds the world’s largest potentially recoverable reserves of shale gas, but the country is lacking in the necessary technology and experience to exploit those reserves. Researchers in the Consortium for Energy Economics and Policy in China (CEEPIC), which was launched by RFF and Chinese partners in 2012, have been working to bring shale gas development best practices from the United States to China. RFF’s Zhongmin Wang and Alan Krupnick released a series of papers designed to bridge the knowledge gap, including “US Shale Gas Development: What Led to the Boom?” and “Sector Effects of the Shale Gas Revolution in the United States.”
RFF Center for Energy Economics and Policy (CEEP)
Researchers working in CEEP help to develop smart approaches for the efficient use and sustainable development of energy resources. In addition to the research above, they also explore the economics of natural gas, the market for alternative vehicles, and the intersection of energy and water, among other issues. www.rff.org/ceep
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Economy and Environment
Energy Efficiency
Considering a US Carbon Tax
In response to the national and international debate surrounding the costs, benefits, and effectiveness of carbon taxes, RFF researchers set out to help inform discussions with real data based on innovative modeling and analyses. RFF’s Richard Morgenstern, Roberton Williams, and Dallas Burtraw, working with RFF University Fellow Jared Carbone of the University of Calgary, released “Deficit Reduction and Carbon Taxes: Budgetary, Economic, and Distributional Impacts.” They found that a carbon tax (in the range of $20 to $50 per ton of carbon dioxide) represents a potentially substantial revenue source for the United States—from $160 billion to $360 billion in gross revenues per year, or $1.6 trillion to $3.6 trillion over a decade. RFF’s Dallas Burtraw and Karen Palmer examined other aspects of a carbon tax—how it would interact with other policies designed to reduce emissions, encourage cleaner energy, and improve energy efficiency. In the RFF discussion paper “Mixing It Up: Power Sector Energy and Regional and Regulatory Climate Policies in the Presence of a Carbon Tax,” they explored interactions with state or regional greenhouse gas programs, renewable subsidies, state renewable portfolio standards programs, and other subnational policies.
Providing Information to Close the Energy Efficiency Gap
Improvements in energy efficiency often appear to pay for themselves in energy cost savings. Yet people frequently fail to make such investments—a phenomenon known as the “energy efficiency gap.” New research by RFF’s Juha Siikamäki and RFF board member Richard Newell of Duke University, “Nudging Energy Efficiency Behavior: The Role of Information Labels,” finds that one tool to help close the gap is better labeling of energy efficient appliances. Specifically, they note that simple information on how much energy (and money) will be saved is the most important element to encourage such purchases. Another way to provide information about energy efficiency is through “green” home certifications, such as the federal government’s Energy Star program. In “Is Energy Efficiency Capitalized into Home Prices? Evidence from Three US Cities,” RFF’s Margaret Walls, Karen Palmer, and Todd Gerarden find that local certifications have a larger effect on sales prices than national certifications.
RFF Center for Climate and Electricity Policy (CCEP)
In addition to conducting research on carbon taxes and energy efficiency, CCEP researchers also examine, among other issues, greenhouse gas regulation under the Clean Air Act, state and regional policies to reduce emissions, and the impact of abundant natural gas on the electricity sector. www.rff.org/ccep
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Flooding and Resilience
Forests
Reducing Vulnerability to Climate Change and Weather Extremes
Following Hurricane Sandy, RFF’s Carolyn Kousky and coauthor Erwann Michel-Kerjan of the Wharton Risk Management Center released “Hurricane Sandy, Storm Surge, and the National Flood Insurance Program: A Primer on New York and New Jersey.” They find that a significant number of flooded homes and businesses did not have a flood insurance policy. Recently, the authors released “Addressing Affordability in the National Flood Insurance Program,” in which they propose an innovative voucher program to ensure insurance remains affordable for low- and middle-income residents. Also in 2013, the Mississippi River flooded St. Louis. RFF’s Carolyn Kousky and Margaret Walls released “Floodplain Conservation as a Flood Mitigation Strategy: Examining Costs and Benefits.” The paper highlights the effects of protecting lands from development to utilize the floodplain’s natural “green” infrastructure for reducing flood damages. For one greenway along the Meramec River in St. Louis County, Missouri, the benefits—of flood reduction and increases in nearby housing values—greatly exceeded the opportunity cost of not developing the land.
Examining the Carbon Footprint of Wood Biomass
As the United States explores new methods for expanding its renewable energy portfolio, debate continues regarding the sustainability of burning wood for energy. Part of the debate is the existing “food versus fuel” problem related to land use. In new research, “Wood Bioenergy and Land Use: A Challenge to the Searchinger Hypothesis,” RFF’s Roger Sedjo, with coauthors Brent Sohngen of Ohio State University and RFF’s Anne Riddle, argues that land that is not productive enough to produce traditional crops could be used to produce wood biomass. This would not drive up food prices or encourage changes in land use abroad to grow more food. Equally important in the biomass debate is the question about carbon emissions: Is biomass carbon neutral? To help answer this question, RFF’s Roger Sedjo released “Regulating Emissions from Bioenergy: What LifeCycle Assessments Tell Us,” finding that the environmental impact of biomass must be measured over its lifetime—from raw material extraction through materials processing, distribution, use, and disposal. If this is done correctly, biomass will generate no net emissions.
RFF Center for the Management of Ecological Wealth (CMEW)
At CMEW, researchers examine a variety of topics—in addition to flooding and forest issues— related to the efficient and effective management of natural resources. They also explore eco-certification programs, opportunities for investing in public lands, and how to measure returns on conservation investments, among other issues. www.rff.org/cmew
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Convening Our Community
The development of truly consequential research does not begin and end with the researcher. It requires cultivating trusted relationships with people whose experiences and future will be shaped by the research findings. RFF’s reputation for independence and rigor allows its researchers to do just that. RFF is a convener of thought leaders and a place of new ideas. Throughout the year, interdisciplinary groups of experts from the business, academic, government, and NGO sectors meet at RFF to identify key issues and ensure that the right questions are being asked. Some of RFF’s most thought-provoking events of 2013 are featured here.
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Findings from RFF’s Initiative, “Managing the Risks of Shale Gas Development”
“Case-by-case permitting you see a lot [in shale gas development]. It has important advantages. It’s more flexible than any other form of regulation . . . but it has important disadvantages that I think are underappreciated in terms of how transparent it is. It’s very difficult for outsiders to understand what is required and what’s not required in these case-by-case permit applications.”
Nathan Richardson of RFF on the use of permits for regulating shale gas development.
Ice Sheets on the Move
“Sea level rise has been accelerating. . . . For the twentieth century, the mean global sea level rise was somewhere between 15 and 18 centimeters. And for the last 20 years, it has been going up at a rate nearly double that. . . . If you extrapolated to 2100 with no acceleration, you’re looking at 32 centimeters. That’s over a foot of sea level rise by 2100.”
Jonathan Bamber of the University of Bristol on tracking the melt of ice sheets.
Species Conservation under the Endangered Species Act: Science, Partnerships, and Effectiveness
“What does it take? What does recovery look like? Let’s figure that out now. Let’s figure out what, if anything, can be done to begin conservation on the ground and avoid the need for [species] listing.”
Paul Souza of the US Fish and Wildlife Service on “setting the conservation bar.”
The Role of a Carbon Tax in Tax Reform and Deficit Reduction
“A carbon tax can be quite a substantial source of revenue. . . . Over a 10-year budget window, the lowest carbon tax we’re looking at raises more than $1.5 trillion. The highest carbon tax is bringing in more than $3 trillion. . . . It’s not enough to solve the deficit problem on its own, but it’s enough to take a big bite out of it.”
Rob Williams of RFF (center) on possible revenues from a $20 and $50 tax per ton of carbon dioxide. 9
The Media, Science, and Cognition: How We Shape Our Understanding of Environmental Issues
“Hot cognition can lead people to work habitually in their thinking, so their thinking goes in a pattern . . . for example, when I’m faced with X, I do Y. . . . And sometimes those habits can bias our search for information and bias what kind of information we will take in. So we have to be thinking about ways we can move people from just doing what their habit is . . . so that they may think about things in a new way and let new information in.”
Barbara Allen of Carleton College on how people think about new information, with Julia Kumari Drapkin of iSeeChange.
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Cheaper Fuels for the Light-Duty Fleet
“This is basically a ‘chicken and egg’ problem. You not only need the fuel but you need the vehicles. There’s investment that’s required on both sides, so who is going to go first?”
Richard Morgenstern of RFF on flexible fuel vehicles that can use natural gas–based ethanol fuel.
Agricultural Biotechnology and the Environment: Perspectives on the Next 10 Years
“Ninety-nine percent or more of current crops are herbicide tolerant or insect resistant. . . . A recent survey suggests because these crops are used and encouraged in industrial agriculture—and the heavy use of herbicides that these crops were designed for—resistant weeds now infest 50 to 60 million acres [nationwide].”
Doug Gurian-Sherman from the Union of Concerned Scientists on the risks of genetically modified agriculture.
The Future of US Water Supplies
“Climate change is a lot more about water than it is about temperatures. . . . It’s about liquid water, it’s about frozen water, it’s about freshwater, and it’s about seawater. . . . The Earth’s system uses the water cycle to mix heat from areas where there’s too much heat to areas where there’s too little.”
Brad Udall of the University of Colorado’s Getches-Wilkinson Center for Natural Resources, Energy, and Environment on water risks.
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Shaping Policy Dialogues
Every year RFF researchers develop and advance smart solutions for solving complex issues that impact the environment and the economy. They pride themselves on anticipating and asking the right questions—and RFF’s reputation for objectivity allows its researchers to be heard where they can make a difference. In 2013, RFF researchers worked to enrich policy dialogues at local, state, and national levels, and around the world.
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RFF Ideas That Made an Impact
This year, RFF researchers examined a variety of policy issues, pioneering new approaches and developing creative options for improving their efficiency and effectiveness, including the following: The benefit of using flexible performance standards to regulate greenhouse gas emissions from existing power plants under the Clean Air Act The use of natural gas to generate lower fuel prices for cars and trucks The limits of using innovation to respond to environmental problems
Options for supplementing the Corporate Average Fuel Economy (CAFE) standards with policies to reduce greenhouse gas emissions and oil dependence The impact of a carbon tax on economic growth and greenhouse gas emissions
A proposal for improving flood insurance affordability by using a voucher system coupled to a low-interest loan program for investments in hazard mitigation Approaches for producing large levels of biomass without compromising crop production
The effect of shale gas development on surface water and property values
New funding strategies for financially struggling state parks
Implementation of and cost containment in California’s cap-and-trade system
RFF researchers, working in an advisory capacity, actively contribute to the work of numerous organizations, including those listed here:
• California Air Resources Board • Inter-American Development Bank • Intergovernmental Panel on Climate Change • National Academy of Sciences • National Oceanic and Atmospheric Administration
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• National Research Council • US Department of Energy • US Environmental Protection Agency • The World Bank
Toward the Next Decade
As RFF concluded the celebration of its 60th anniversary, researchers and staff began to look toward shaping the next decade at RFF. Led by RFF Vice President for Research Molly Macauley, they explored the consequential issues ahead that could represent a new phase in RFF’s evolution, while remaining true to RFF’s commitment to public service.
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A note from RFF Vice President for Research Molly K. Macauley
This Annual Report turns a page in RFF’s history as we begin our seventh decade. We remain keenly aware of our social responsibility as a think tank dedicated to exceptional research and policy analysis. In fact, we were critically reminded of this public service role when several of our university fellows (exceptionally distinguished academicians working in RFF’s fields) met with the RFF Board of Directors to celebrate RFF’s 60th anniversary and help launch us into the next decade. They noted that RFF has been and remains “the most influential institution working on environmental economics.” They also said that the organization had shaped the direction of their professional lives; for example, one commented, “for my career, I have been standing on the shoulders of one giant and that giant is RFF.” The excellence of RFF has been and always will be its people and ideas. In the 1980s, RFF researchers and collaborators produced seminal books on the economics of the energy and electricity sectors; today, major changes lie ahead in these sectors and our creativity is being tapped to address emerging issues in these markets. The need also remains for deeper application of concepts such as ecosystem services and their valuation to inform conservation return on investment analysis—another area in which RFF has produced pioneering research. And the years ahead may bring fundamental changes in the macroeconomy (rates of unemployment and economic growth, in particular), with new implications for environmental management. Developing new tools to quantify risk and communicate uncertainty about the future will become more critical than ever. With these priorities, RFF has initiated new research on the economics of natural gas and the potential creation of an energy market that could span North America. We are sharpening our focus on the measurement and mitigation of risk and uncertainty about the effects of extreme weather on our coasts and the related problem of improving the effectiveness of flood insurance. And, we are building an innovative model to understand the effects of environmental policies on economic growth and employment.
“Looking toward the next decade, RFF’s reputation and credibility continue to allow it to be a place of people and ideas, generating a dynamic dialogue that ensures we make a difference.”
What distinguishes RFF as we pursue these ideas is not only state-of-the-art research. In addition to our core staff, our academic fellowships support a large network of junior scholars—an investment in the next generation. Furthermore, this Annual Report provides a glimpse of the almost daily flow of visitors from around the world for collaborations critical to our work. Looking toward the next decade, RFF’s reputation and credibility continue to allow it to be a place of people and ideas, generating a dynamic dialogue that ensures we make a difference.
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Board of Directors
As of October 2013
Leadership
W. Bowman Cutter Chair Senior Fellow and Director, Economic Policy Initiative, The Roosevelt Institute John M. Deutch Vice Chair Institute Professor, Department of Chemistry, Massachusetts Institute of Technology Philip R. Sharp President, Resources for the Future
C. Boyden Gray Founder/Partner, Boyden Gray & Associates David Hawkins Director, Climate Center, Natural Resources Defense Council Rick R. Holley President and CEO, Plum Creek Peter R. Kagan Managing Director, Warburg Pincus, LLC Sally Katzen Senior Advisor, Podesta Group Rubén Kraiem Partner, Covington & Burling LLP Robert B. Litterman Chairman, Risk Committee, Kepos Capital Richard G. Newell Director, Duke University Energy Initiative; Professor, Nicholas School of the Environment, Duke University Henry Schacht Managing Director and Senior Advisor, Warburg Pincus Richard Schmalensee Howard W. Johnson Professor and Dean Emeritus, Sloan School of Management, Massachusetts Institute of Technology
Robert N. Stavins* Albert Pratt Professor of Business and Government, John F. Kennedy School of Government, Harvard University Lisa A. Stewart President and CEO, Sheridan Production Company, LLC Joseph Stiglitz Professor of Economics, Business, and International Affairs, Columbia University School of Business Mark R. Tercek President and CEO, The Nature Conservancy
Members
Anthony Bernhardt Northern California Director, Environmental Entrepreneurs Trudy Ann Cameron Raymond F. Mikesell Professor of Environmental and Resource Economics, University of Oregon Red Cavaney Alexandria, VA Elaine Dorward-King Executive Vice President of Sustainability and External Relations, Newmont Mining Corporation Linda J. Fisher Vice President and Chief Sustainability Officer, DuPont Environment and Sustainable Growth Center
Chair Emeriti
Darius W. Gaskins, Jr. Partner, Norbridge, Inc. Robert E. Grady Managing Director, Cheyenne Capital Fund Lawrence H. Linden Founder and Trustee, Linden Trust for Conservation Frank E. Loy Washington, DC
*Board member-elect
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In Appreciation of RFF’s Retiring Board Members
In October, four RFF board members retired from their positions after nearly a decade of service. RFF thanks them greatly for their leadership and dedication to the institution and its role in the policy process.
Vicky A. Bailey
Mohamed T. El-Ashry
Lawrence H. Linden
Frank E. Loy
Vicky A. Bailey Principal/Partner, BHMM Energy Services LLC Vicky Bailey was elected as a member of the RFF Board of Directors in 2004. During her tenure, she demonstrated a keen understanding of complex policy matters related to energy and electricity and significantly advanced RFF’s fundraising success as chair of the Development Committee of the Board. Mohamed T. El-Ashry Senior Fellow, UN Foundation Mohamed El-Ashry joined the RFF Board in 2004, bringing his deep knowledge of global environmental policy. He also served as the founding chair of the Research Program Committee, creating a forum through which the RFF Board and staff can explore emerging areas of research together.
Lawrence H. Linden Founder and Trustee, Linden Trust for Conservation Larry Linden was elected to the RFF Board of Directors in 2001, and also served as its chair for several years. His tenure was characterized by a strong personal commitment to creating a more sustainable world shaped by smarter policy. He also worked closely with the Board and the RFF leadership team through a strategic review that significantly enhanced RFF’s ability to deliver on its mission. Frank E. Loy Washington, DC Frank Loy joined the RFF Board in 2001. He served as the board chair during a crucial time in RFF’s history, leading the search that appointed current RFF President Phil Sharp. To this role, he brought considerable experience in the public, private, and nonprofit sectors, and encouraged RFF to be more attuned to the needs of policymakers.
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Supporters
RFF is sincerely grateful to the following supporters for their generous contributions during 2013.
Individuals and Family Foundations
Chairman’s Circle $50,000 and above Gregory Alexander S.D. Bechtel, Jr. Foundation Anthony Bernhardt W. Bowman Cutter Christopher J. Elliman Joseph Gleberman Grantham Foundation for the Protection of the Environment Mark Heising and Liz Simons Peter Kagan Lawrence H. Linden Litterman Family Foundation The G. Unger Vetlesen Foundation President’s Circle $25,000 and above Knobloch Family Foundation Council $5,000 and above Christopher C. Aitken Merribel Ayres Vicky A. Bailey Paul F. Balser
David Blood John M. Deutch Linda J. Fisher Robert W. Fri Edward F. Hand James Harmon Stephen D. Kahn Raymond J. Kopp Rubén Kraiem Richard E. Kroon Jan W. Mares Wilhelm Merck Steve Percy Helen Raffel John W. and Jeanne M. Rowe Robert P. Rotella Foundation Roger and Vicki Sant Henry B. Schacht Philip R. Sharp Jeffrey A. Smith Lisa Stewart Edward L. Strohbehn, Jr. Associates $250 and above Anonymous (4) Catherine Abbott Garrett Albright James K. Asselstine Carter Bales H. Spencer Banzhaf Glenn C. Blomquist
Harold and Colene Brown Family Foundation Dallas Burtraw Barbara Bush John M. Campbell Red Cavaney Emery Castle John C. Colman Joel Darmstadter Lee H. Endress Richard L. Epstein Robert S. Epstein Dod Fraser William Fulkerson Kathryn Gabler Manuel Godinho de Matos Debbie Groberg Ridgway M. Hall Nicole Hardy Lea Harvey William Hildreth R. Glenn Hubbard Leonard S. Hyman Julia and Howard Klee Don Kerr The Jennifer and Tim Kingston Charitable Fund Thomas E. Lovejoy Ernest J. Moniz George G. Montgomery Richard G. Newell Daniel H. Newlon Abby Newton Robert R. Nordhaus
Edward L. Phillips Bernard J. Picchi Mark Pisano William Pizer Paul and Chris Portney Milton Russell Thomas C. Schelling Richard Schmalensee Schmitz-Fromherz Family Fund Deborah J. Schumann Jesse A. Schwartz Hilary A. Sigman Joseph Stiglitz John E. Tilton Tesar Timon Victoria Tschinkel Chris Whipple R. James Woolsey
Legacy Society
Catherine G. Abbott John F. Ahearne Paul F. Balser Emery N. Castle Thomas D. Crocker J. Clarence Davies Margaret W. Fisher Maybelle Frashure Kenneth D. Frederick Robert W. Fri Darius W. Gaskins Robert E. Grady
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Debbie Groberg Winston Harrington Donald M. Kerr Thomas J. Klutznick Richard Morgenstern Steven W. Percy Paul R. Portney William D. Ruckelshaus Clifford S. Russell Helen Marie Streich Edward L. Strohbehn Victoria J. Tschinkel
Green Diamond Resource Company Southern Company Toyota Warburg Pincus* Council $25,000 and above American Gas Association American Honda Motor Company CF Industries ConocoPhillips The Dow Chemical Company EQT* Hess Corporation Pacific Gas and Electric Company The Salt River Project Schlumberger Ltd. Shell Oil Company Southern California Edison Associates Less than $25,000 American Forest and Paper Association Bracewell & Giuliani LLP BASF Corporation Consolidated Edison Company of New York Edison Electric Institute Hunton & Williams LLP MeadWestvaco Corporation Merrill Lynch & Co., Inc.* Microsoft Corporation*
Mitsubishi Corporation Raytheon Company* Stout and Teague Two Sigma Investments LLC Vinson & Elkins LLP Westport Innovations, Inc.
Inter-American Development Bank IVL, Swedish Environmental Research Institute, Ltd. Next 10 Statistics Norway US National Academy of Sciences Wageningen University The World Bank World Health Organization World Wildlife Fund—US
Foundations
The Energy Foundation Fuel Freedom Foundation Generation Foundation The Gordon and Betty Moore Foundation The Curtis & Edith Munson Foundation Alfred P. Sloan Foundation Tinker Foundation US Endowment for Forestry and Communities The Walton Family Foundation
Corporations and Associations
Chairman’s Circle $100,000 and above Duke Energy* Exelon ExxonMobil Corporation General Electric Goldman, Sachs & Co. Plum Creek Timber Company, Inc. United Technologies Corporation Weyerhaeuser President’s Circle $50,000 and above Anadarko Petroleum Corporation American Chemistry Council BP America Chevron Corporation
Government Agencies
National Science Foundation US Army Corps of Engineers US Centers for Disease Control and Prevention US Department of Agriculture/Forest Service US Department of Defense US Department of Energy US Department of Health and Human Services US Department of Transportation (FTA) US Environmental Protection Agency US Geological Survey US National Aeronautics Space Administration US National Oceanic and Atmospheric Administration
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Other Institutions
Asian Development Bank Bipartisan Policy Center Biotechnology Industry Organization Cornell University Deurstche Gesellschaft Für Internationale Zusammenarbeit Electric Power Research Institute University of Gothenburg
*Matched their employees’ contributions to RFF.
Financial Statements
Year Ending September 30th ASSETS
CURRENT ASSETS ASSETS Cash and cash equivalents CURRENT ASSETS Grants and contract revenue receivable Cash and cash equivalents Contributions receivable Grants and contract revenue receivable Other receivables Contributions receivable 2013 2013 $50,000 1,348,984 $50,000 1,664,517 1,348,984 788 1,664,517 217,473 788 2012 2012 $310,029 543,997 $310,029 1,259,301 543,997 77,149 1,259,301 43,304 77,149
Fixed assets - net of accumulated depreciation Total investments Assetsassets held under charitable trust depreciation agreements Fixed - net of accumulated Total Assets Assets held under charitable trust agreements Total Assets LIABILITIES AND NET ASSETS CURRENT LIABILITIES LIABILITIES AND NET ASSETS Tax-exempt bond CURRENT LIABILITIES nancing, current portion Line of credit Tax-exempt bond nancing, current portion Grants and awards payable Line of credit Accounts payable accrued liabilities Grants and awardsand payable Postretirement bene ts, current Accounts payable and accrued liabilities
Investment LLC Investmentsin atLand, fair value Investment in RCC Investment in Land, LLC Total investments Investment in RCC
INVESTMENTS Contributions receivable, net of current portion Investments at fair value INVESTMENTS
Other Other assets receivables Total current assets Other assets Contributions receivable, net of current portion Total current assets
3,281,762 217,473 587,490 3,281,762 587,490 48,040,529 8,900,000 48,040,529 8,900,000
2,233,780 43,304 457,490 2,233,780 457,490 20,473,766 8,900,000 20,473,766 4,689,894 8,900,000
373,046 6,844,141 $68,026,968 373,046 $68,026,968
56,940,529 6,844,141 56,940,529
334,003 6,019,189 $43,108,122 334,003 $43,108,122
34,063,660 4,689,894 6,019,189 34,063,660
Deferred revenue Postretirement bene ts, current Total current liabilities Deferred revenue Tax-exempt bond nancing, net of current portion Total current liabilities Postretirement bene ts, net net of current Tax-exempt bond nancing, of current portion Liabilities under split-interest Postretirement bene ts, net ofagreements current Funds held for others Liabilities under split-interest agreements Total liabilities Funds held for others
2013 $260,000 2013 $260,000 67,750 1,612,343 67,750 53,045 1,612,343 598,563 53,045 2,591,701 598,563 5,160,000 2,591,701 463,763 5,160,000 237,323 463,763
NET ASSETS Total liabilities Unrestricted NET ASSETS
146,231 237,323 $8,599,018 146,231 $8,599,018 49,532,008 3,583,035 49,532,008 6,312,907 3,583,035
83,603 221,052 $9,531,413 83,603 $9,531,413 24,798,050 2,855,752 24,798,050 5,922,907 2,855,752
379,816 53,045 3,337,113 379,816 5,420,000 3,337,113 469,645 5,420,000 221,052 469,645
2012 $250,000 2012 908,776 $250,000 32,500 908,776 1,712,976 32,500 53,045 1,712,976
Total net assetsrestricted Permanently Total liabilities and net assets Total net assets Total liabilities and net assets
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Temporarily Unrestrictedrestricted Permanentlyrestricted restricted Temporarily
59,427,950 6,312,907 $68,026,968 59,427,950 $68,026,968
33,576,709 5,922,907 $43,108,122 33,576,709 $43,108,122
CHANGES IN UNRESTRICTED NET ASSETS REVENUE Individual contributions Foundation grants Corporate contributions Government grants and contracts Other institution grants Rental income Investment income net of fees Other revenue Total operating revenue EXPENSES Programs Research Academic relations Communications Other direct Total program expenses Fundraising Management and administration Building operations and maintenance Total functional expenses Change in unrestricted net assets from operations NON-OPERATING REVENUES (EXPENSES) Realized and unrealized gains (losses) on investment transactions Realized gain on sale of investment in RCC Increase (decrease) in unrestricted net assets Net assets at beginning of year Net assets at end of year 2,807,881 24,581,087 $25,851,241 $33,576,709 $59,427,950
Development 7.7% Building operations 8.7% Research programs 71.2% Other revenue .1%
2013 $2,494,226 1,488,922 2,300,150 2,036,023 972,491 2,023,711 1,567,343 13,017 $12,895,884
2012 $2,348,554 1,525,872 1,353,550 2,512,294 1,255,166 3,168,343 187,317 35,177 $12,386,273
8,600,249 185,195 1,255,065 221,535 $10,262,044 1,114,947 1,795,025 1,261,596 $14,433,612 ($1,537,728)
8,488,544 188,594 1,140,249 102,405 $9,919,792 959,775 1,622,396 1,008,127 $13,510,090 ($1,123,817) 2,497,068 $1,373,251 $32,203,458 $33,576,709
Investment and rental income 27.8%
REVENUE
In fiscal year 2013, RFF’s operating revenue was $12.9 million, 72.1 percent of which came from individual contributions, foundation grants, corporate contributions, and government grants. RFF augments its income by an annual Management and disbursement from its reserve fund to support operations. At 12.4% the end of fiscal year administration 2013 the reserve fund was valued at $48 million.
Gifts and grants 72.1%
EXPENSES
RFF research and educational programs continued to be vital in 2013, representing 71.2 percent of total expenses. Management and administration combined with fundraising expenses were only 20.1 percent. The balance is related to facilities rented to other nonprofit organizations
Development 7.7% Building operations 8.7% Research programs 71.2%
Other revenu
Management and administration 12.4%
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Gifts and grants 72.1%
Experts and Staff
As of October 2013
Executive Leadership
Phil Sharp President Edward F. Hand Vice President, Finance and Administration Lea Harvey Vice President, Development, and Corporate Secretary Molly K. Macauley Vice President for Research and Senior Fellow Peter Nelson Director of Communications
Roger M. Cooke Chauncey Starr Senior Fellow Maureen L. Cropper Senior Fellow Joel Darmstadter Senior Fellow J. Clarence Davies Senior Fellow Alexander Egorenkov Research Assistant Rebecca Epanchin-Niell Fellow Carolyn Fischer Senior Fellow and Associate Director, CCEP Brian Flannery Center Fellow, CCEP Arthur G. Fraas Visiting Scholar Robert Fri Visiting Scholar Leonard Goff Research Assistant Hal Gordon Research Assistant Marc Hafstead Fellow Winston Harrington Senior Fellow Kristin Hayes Assistant Director, CCEP and CEEP Mun Ho Visiting Scholar Shefali Khanna Research Assistant
Raymond J. Kopp Senior Fellow and Director, CCEP Carolyn Kousky Fellow Alan J. Krupnick Senior Fellow and Director, CEEP Yusuke Kuwayama Fellow Corinne Land Research Assistant Joshua Linn Fellow and Associate Director, CCEP Antung Anthony Liu Fellow Xu Liu Research Assistant Randall Lutter Visiting Scholar Jan Mares Senior Policy Advisor Virginia D. McConnell Senior Fellow Richard D. Morgenstern Senior Fellow Daniel F. Morris Center Fellow, CCEP Lucija Anna Muehlenbachs Fellow Clayton Munnings Research Assistant Sheila M. Olmstead Nonresident Fellow Ariel Ortiz-Bobea Fellow
Karen L. Palmer Research Director, Senior Fellow, and Associate Director, CCEP Sophie Pan Research Assistant Anthony Paul Center Fellow, CCEP Nigel Purvis Visiting Scholar Nathan Richardson Resident Scholar Skyler Roeshot Research Assistant Heather L. Ross Visiting Scholar Stephen W. Salant Nonresident Fellow Francisco Santiago-Avila Research Assistant Roger A. Sedjo Senior Fellow and Director, FEPP Samantha Sekar Research Assistant Leonard A. Shabman Resident Scholar Daniel Shawhan Gilbert F. White Postdoctoral Fellow Jhih-Shyang Shih Fellow Hilary Sigman Nonresident Fellow Juha Siikamäki Associate Research Director and Fellow Kenneth A. Small Nonresident Fellow
Research
Joseph E. Aldy Nonresident Fellow Allen Blackman Thomas Klutznick Senior Fellow James W. Boyd Senior Fellow and Director, CMEW
Timothy J. Brennan Senior Fellow
Anna Brittain Manager, CMEW Stephen P.A. Brown Nonresident Fellow Dallas Burtraw Darius Gaskins Senior Fellow and Associate Director, CCEP Ziyan Chu Senior Research Assistant
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Daniel Velez-Lopez Research Assistant Peter Vail Research Assistant Margaret A. Walls Research Director and Senior Fellow Yushuang Wang Research Assistant Zhongmin Wang Fellow Roberton C. Williams, III Senior Fellow and Director, Academic Programs Michael Wolosin Visiting Scholar
Jon A. Krosnick Stanford University Simon Levin Princeton University John A. List University of Chicago Anup Malani University of Chicago Wallace E. Oates University of Maryland William A. Pizer Duke University Stephen Polasky University of Minnesota Paul R. Portney University of Arizona James N. Sanchirico University of California, Davis V. Kerry Smith Arizona State University Brent L. Sohngen Ohio State University Robert N. Stavins Harvard University Thomas Sterner University of Gothenburg John E. Tilton Colorado School of Mines Jonathan B. Wiener Duke University JunJie Wu Oregon State University
Scott Hase Manager, Institutional Outreach and Events Christine Tolentino Events Coordinator Ellen A. Walter Graphic Designer and Production Associate Shannon Wulf Tregar Deputy Director for Public and Government Affairs Adrienne Young Managing Editor
Karen Furman Staff Assistant Shilo Lillis Accounting Staff Assistant Mara Parrish Human Resources Manager Charlotte Pineda Senior Staff Assistant Claudia Rios Accounting Manager Tiffany Smith Human Resources Assistant Marilyn M. Voigt Executive Assistant to the President Lester Wilkerson Payroll-Project Accounting Clerk
Development
Angela Blake Development Assistant Barbara Bush Director of Donor Relations Key Hill Director of Foundation and Corporate Relations Khadija Hill Development Officer, Individual Giving Mike Viola Development Associate Dana Yanocha Development Officer, Foundation and Corporate Relations
University Fellows
John F. Ahearne Sigma Xi John M. Antle Oregon State University Jesse H. Ausubel The Rockefeller University Gardner M. Brown, Jr. University of Washington Mark A. Cohen Vanderbilt University Partha Dasgupta University of Cambridge Robert T. Deacon University of California, Santa Barbara Hadi Dowlatabadi University of British Columbia Lawrence H. Goulder Stanford University W. Michael Hanemann University of California, Berkeley Charles D. Kolstad University of California, Santa Barbara
Information Technology
Aris Awang Database Programmer/ Analyst Danish Baig Desktop Support Analyst Nauman Memon IT Manager Jhon Valdez Desktop Support Analyst
Communications
Jeannine Ajello Digital Strategy Manager Sarah Aldy Editor, Resources Nicole Hardy Online Communications Associate
Finance and Administration
Julie Alleyne Research Division Manager Jane Bergwin-Rand Grants and Contracts Administrator Michael Brewer Mailroom and Purchasing Assistant Chris Clotworthy Librarian
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How You Can Help
RFF’s capacity to make an impact is due in large part to the individuals and organizations that believe that objective, research-based insights lead to smarter policy. Every gift helps RFF develop rigorous, independent research on issues that will shape the environment, economy, and world for years to come.
• Send a gift directly to RFF’s office in Washington, DC. • Donate online through the secure Network for Good website, www.networkforgood.org. • Participate in the Combined Federal Campaign using RFF’s CFC code 19241. • Provide matching gifts through your employer’s matching gift program. • Give gifts of stocks, bonds, or mutual funds. • Consider planned gifts through bequests or deferred giving.
www.rff.org/support
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Improving Efficiency and Collaboration
RFF completed the renovation of its headquarters in 2013. With a desire to maximize efficiency while still planning for growth, RFF moved from three floors to twoâ&#x20AC;&#x201D; still adding more offices for researchers and visitors, doubling its collaborative work areas, and improving the technology in its conference suites.
1616 P Street NW, Suite 600 Washington, DC 20036 www.rff.org